Public funding for expanding broadband in the EU is falling short and will not be enough to achieve the goal of fibre for all, according to a report from the think tank Centre on Regulation in Europe (CERRE), according Telecompaper. The study found that combined public funding to support broadband deployment in the period to 2020 amounts to around EUR 7 billion per year, and at this rate, it will take Europe nearly 30 years to meet its FTTH targets.
The funding is not only too little but also "poorly co-ordinated, insufficiently monitored, and subject to rules which need to be simplified and updated", CERRE said. The study includes recommendations to policymakers on how to improve the situation, such as:
Mobilise grassroots interests in public funding of broadband with an EU-wide competition for funds.
Improve coordination between the European Investment Bank and the European Commission’s DG Competition to ensure that in each case the appropriate public funding instrument is used.
Increase the share of European funds allocated to broadband.
Revise the existing ‘Broadband State Aid Guidelines’ to clarify key elements such as when and how public funds can be used and allowing higher prices for broadband services provided by publicly funded networks to stimulate roll-out.
Require EU states to provide more data to measure better the effectiveness of state aid measures, with a focus on providing coverage to the greatest number at the lowest cost to taxpayers.
The study examined 157 broadband measures notified to the European Commission under state aid rules by the EU countries over the past 15 years. It found wide variations in public funding across the countries. In the period 2003-18, France spent around EUR 215 per capita and Italy EUR 145, whilst the majority of EU states spent less than EUR 100 per capita and some less than EUR 10.
